Aug 18 2010
The Deepwater Wind project, to be built three miles away from Block Island with six to eight wind turbines to produce wind power, has finally received the approval of Rhode Island Public Utilities Commission (PUC).
The approval for the project came with majority of voting after two weeks of hearing over the objections. Earlier this year the PUC categorically disapproved a similar contract as commercially unfeasible because of it’s comparatively higher production cost than that of coal, nuclear plant or natural gas. The governing body that met during June this year approved a new law governing such type of offshore projects by classifying them as commercially reasonable.
Wind Project
The offshore wind project was objected by Michael McElroy, who represented two large sized production firms, on the grounds that the higher costs of production will drastically increase the power usage bills of large consumers by as much as $300,000 a year. He had also pointed out the non-inclusion of costs related to underwater cable laying which if included will increase the cost of production further. Elia Germani, Chairman of the PUC, said under the newly introduced legislature the project becomes commercially viable because the cost of the project is comparable with countries in Europe and other places. The PUC collectively endorsed the project as viable for its environmental benefits and removal of diesel generators use in Block Island.
Donald Carcieri, Governor of Rhode Island and a dynamic force behind the achievement of the project, praised the decision of reviewing the agreement. He added that the approval will pave the way for the first offshore wind project of the nation and enable more opportunities for new industries in Rhode Island. Under the 20 year price fixing agreement with Rhode Island’s principal conveyor of electricity, Deepwater will receive 24.4 cents for every kilowatt hour of power produced during the first year and this pricing will go up by 3.5% every year till the end of the 20 year contract period.
Source: http://www.dwwind.com/